Federal Signal Corporation (FSS - Free Report) yesterday announced that it signed an agreement to acquire Post Falls, ID-based Ground Force Worldwide. The transaction’s value has been fixed at $45 million in cash.
Yesterday, Federal Signal’s shares ended the trading session at $39.88, reflecting a 0.25% fall from the previous trading day.
Inside the Headlines
Ground Force engages in manufacturing vehicles for handling specialty materials, which are used in the extraction of metals. Its product offerings include water trucks, rock spreaders, dump bodies, and fuel and lube trucks. The need for services and parts fetches it recurring aftermarket businesses.
As noted, Ground Force’s addition to Federal Signal’s portfolio will be an added advantage for the latter’s material hauling product offerings. Green initiatives and the electrification of vehicles are likely to boost the demand for specialty vehicles, going forward. Ground Force’s talented workforce and aftermarket businesses are other tailwinds.
Ground Force’s revenues totaled $34 million in the trailing 12 months.
Federal Signal anticipates completing the acquisition in fourth-quarter 2021. This is expected to be earnings accretive in the first 12 months of the acquisition completion.
Federal Signal’s Buyout Activities
Acquiring businesses are effective ways for Federal Signal to gain access to new markets, expand its product line and enhance the customer base. It invested $52.2 million on buyout activities (net of cash acquired) in the first half of 2021.
In February 2021, Federal Signal acquired Snohomish, WA-based OSW Equipment and Repair, LLC. The transaction included OSW Equipment’s wholly-owned subsidiaries, Washington-based Northend Truck Equipment and Canada-based Western Truck Body.
The transaction was valued at $52.5 million.
Zacks Rank, Price Performance and Estimate Trend
With a market capitalization of $2.4 billion, Federal Signal currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from solid demand, organic growth actions, buyouts and shareholder-friendly policies. Raw material and supply-chain-related woes might be concerning.
In the past three months, the company’s stock has declined 5% against the industry’s growth of 6.6%.
The Zacks Consensus Estimate for Federal Signal’s earnings is pegged at $1.87 for 2021 and $2.14 for 2022, reflecting respective growth of 2.2% and 2.4% from the 60-day-ago figures. Also, earnings estimates of 47 cents for third-quarter 2021 reflect an increase of 2.2% from the 60-day-ago figure of 46 cents.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Federal Signal Corporation (FSS - Free Report) yesterday announced that it signed an agreement to acquire Post Falls, ID-based Ground Force Worldwide. The transaction’s value has been fixed at $45 million in cash.
Yesterday, Federal Signal’s shares ended the trading session at $39.88, reflecting a 0.25% fall from the previous trading day.
Inside the Headlines
Ground Force engages in manufacturing vehicles for handling specialty materials, which are used in the extraction of metals. Its product offerings include water trucks, rock spreaders, dump bodies, and fuel and lube trucks. The need for services and parts fetches it recurring aftermarket businesses.
As noted, Ground Force’s addition to Federal Signal’s portfolio will be an added advantage for the latter’s material hauling product offerings. Green initiatives and the electrification of vehicles are likely to boost the demand for specialty vehicles, going forward. Ground Force’s talented workforce and aftermarket businesses are other tailwinds.
Ground Force’s revenues totaled $34 million in the trailing 12 months.
Federal Signal anticipates completing the acquisition in fourth-quarter 2021. This is expected to be earnings accretive in the first 12 months of the acquisition completion.
Federal Signal’s Buyout Activities
Acquiring businesses are effective ways for Federal Signal to gain access to new markets, expand its product line and enhance the customer base. It invested $52.2 million on buyout activities (net of cash acquired) in the first half of 2021.
In February 2021, Federal Signal acquired Snohomish, WA-based OSW Equipment and Repair, LLC. The transaction included OSW Equipment’s wholly-owned subsidiaries, Washington-based Northend Truck Equipment and Canada-based Western Truck Body.
The transaction was valued at $52.5 million.
Zacks Rank, Price Performance and Estimate Trend
With a market capitalization of $2.4 billion, Federal Signal currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from solid demand, organic growth actions, buyouts and shareholder-friendly policies. Raw material and supply-chain-related woes might be concerning.
In the past three months, the company’s stock has declined 5% against the industry’s growth of 6.6%.
The Zacks Consensus Estimate for Federal Signal’s earnings is pegged at $1.87 for 2021 and $2.14 for 2022, reflecting respective growth of 2.2% and 2.4% from the 60-day-ago figures. Also, earnings estimates of 47 cents for third-quarter 2021 reflect an increase of 2.2% from the 60-day-ago figure of 46 cents.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Get the latest research report on CSL - FREE
Get the latest research report on FSS - FREE
Get the latest research report on CR - FREE